The good news, according to Leon Cooperman, the billionaire founder of Omega Advisors, is that the current bull market, currently the longest on record, still has gas in the tank and could see a 10% rally over the next six months.
Then there’s the bad news:
That isn’t the only thing that could trigger such a drop, according to Cooperman, who shared his thoughts on CNBC on Wednesday.
He also reiterated the view that victory for either Elizabeth Warren or Bernie Sanders in the 2020 election would similarly crush the stock market.
Cooperman, whose net worth Forbes estimates at $3.2 billion, gave a nod to Winston Churchill, saying, “You don’t make poor people rich by making rich people poor,” he said.
After watching Tuesday’s debate, President Donald Trump clearly agrees:
Warren of Massachusetts, with a wealth tax as her rally cry, continues to rise in the polls of the packed Democratic field. Specifically, she’s calling for an annual 2% tax on fortunes of more than $50 million and a 3% hit on wealth over $1 billion.
Cooperman isn’t a fan.
“I believe in a progressive income tax structure, I believe rich people should pay more, I have no problem with that this wealth tax is baloney,” he told CNBC. “The main vice of capitalism is the unequal distribution of prosperity, the main vice of socialism is the equal distribution of misery.”
Watch the full interview:
That 10% prediction got off on the wrong foot on Wednesday, with the Dow DJIA, +0.00% and S&P 500 SPX, +0.03% down in early action.